Venture Capital and It Effects on Sme Growth Essay

Below is a free essay on "Venture Capital and It Effects on Sme Growth" from Anti Essays, your source for free research papers, essays, and term paper examples.

has had a significant impact on Small and Medium Enterprises (SME) in the developed countries. Small businesses have been and are the stepping stone of industrialization in these countries. Among the developing countries and especially Kenya venture capital has been present since independence yet industrialization is slow. The purpose of this study was to find out the impact of venture capital on growth of Small and Medium Enterprises (SME). The lack of finance has been cited as a major contributor to SME failure in Kenya. Venture capital which is the best source of business finance has been in Kenya for long but little used. The methodology adopted was collection of data before and after use of venture capital.   The findings in this study revealed that venture capital has an impact on growth of SME they finance. The study has demonstrated that use of venture capital can be profitable in Kenya even in an inauspicious political and economic climate. The study concluded that SME that use venture capital experience improved growth and thus more SMEs should be encouraged to use this form of finance if the country has to achieve its vision 2030.   Key words: Venture capital, financial management, Small and Medium Enterprises 1.1   Introduction Governments throughout the world are nowadays turning their attention to small-scale enterprises. This is because attempts to promote economic progress by establishing large industries have usually failed to improve the lives of the majority of the populations concerned (White Paper on International Development, 2000). Therefore, Small and Medium Enterprises (SMEs) are now viewed as important in even and equitable economic development. 2 (RoK, 2005) clearly show that the sector is not only a provider of goods and services but also a driver in promoting competition, innovation and enhancing the enterprise culture which is necessary for private sector development and industrialization. The sector should effectively respond to...

Read Full Essay

Citations

MLA Citation

"Venture Capital and It Effects on Sme Growth". Anti Essays. 21 Oct. 2014

<http://www.antiessays.com/free-essays/Venture-Capital-And-It-Effects-On-385528.html>

APA Citation

Venture Capital and It Effects on Sme Growth. Anti Essays. Retrieved October 21, 2014, from the World Wide Web: http://www.antiessays.com/free-essays/Venture-Capital-And-It-Effects-On-385528.html